AGO 0.00% 4.5¢ atlas iron limited

All this bullish talk oWodgina AGO, yet there are some posters...

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    All this bullish talk oWodgina AGO, yet there are some posters forgetting a couple of minor details, like AGO trading at new lows, and AGO is still losing money at the current price.

    At the current rate they will run out of cash by around the end of the quarter if the note holders let it go on that long. Even the 'deal' that has been worked out but not approved by either shareholders nor all the debt holders, can still bring the company down fairly quickly, as into the hands of administrators.

    Are the bulls forgetting a minor detail like the output falls by July to 10mt/a as Wodgina (IIRC) closes. Then, with lower output, they will have to remediate the site, so more costs. They don't have the cash to mine Corunna Downs, as starting there will take lots of capital. Then we get to July next year and another mine closes and production falls again to 6mt/a.

    Even if the deal goes ahead and current holders get diluted by 70% again, it wont take long for the pin to be pulled as they will not be able to keep cash at the $55m level unless IO goes up AND stays at $60+/t.

    The company would have shareholders believe they only lost $3/t last quarter on 3.6mt, yet working capital fell by $40m. Those 2 numbers don't add up. The real cost is far higher than $54/t and last quarter they lost over $10/t in cash. When IO prices fall again after chinese new year, and lack of cyclone activity in the pilbara, then the companies days are numbered.

    Those of you who can't see it are just not looking!!
 
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Currently unlisted public company.

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